Medford Community Land Trust Study

A Community Land Trust (CLT) is a nonprofit organization that acquires and manages land on behalf of a community. The primary goals of CLTs are to ensure perpetually affordable housing, to facilitate community-driven development without displacement, and to lower the bar for homeownership, business ownership, and community wealth-building, particularly for those with low to moderate incomes. CLTs separate ownership of land from ownership of the buildings on the land, which helps keep housing prices stable and prevents market speculation, gentrification, and displacement. CLTs can manage commercial space, agricultural land, parks, and playgrounds, but most prioritize preservation and development of affordable housing.

In a CLT, the land is owned by the trust, and individuals or families can purchase or rent homes on top of the land. Homeowners typically sign a long-term lease (often 99 years) with the CLT, giving them full rights to use the land while the CLT retains ownership of it. This arrangement ensures that the land remains available for affordable housing and community use, even if the homes are sold. For additional information, see: Grounded Solutions, How A Community Land Trust Works.

CLTs are powerful tools for preserving and developing affordable housing in areas where costs are rising. By removing land from the speculative market, CLTs can offer stable, long-term affordable housing options. CLTs also help prevent displacement of residents due to gentrification and ensure that communities have control over local development.

CLTs are typically governed by a board of directors composed of three groups: residents of the CLT properties, community members who do not live on CLT land, and public representatives (such as local government officials). This tripartite structure ensures that decisions reflect the interests of both residents and the broader community. For further information on governance and structure, see the Greater Boston CLT Network’s FAQ.

While CLTs often prioritize low- to moderate-income families, they can benefit a wide range of people. The goal is to create and maintain affordable housing for anyone who might otherwise be priced out of the housing market, regardless of income level.

Yes, you can sell your home if it’s on CLT land. However, there are often resale restrictions in place to ensure that the home remains affordable for future buyers. The resale price is usually determined by a formula set by the CLT, which aims to give the seller a fair return on their investment while keeping the home affordable for the next buyer. For more information, see: Freddie Mac’s Community Land Trust and Resale Restrictions FAQ.

Homeowners in a CLT benefit from stable and often lower housing costs, the ability to build equity through homeownership, and the security of long-term, renewable leases. Additionally, because CLTs are focused on community well-being, residents often have access to support services, such as home maintenance education.

CLTs are typically funded through a combination of grants, donations, and public funds. Some CLTs also generate income through ground leases or the sale of homes. The nonprofit status of CLTs often allows them to access philanthropic and government funding aimed at promoting affordable housing and community development. CLTs are a longer-term use of public subsidy because they maintain housing as affordable perpetually, unlike many affordable housing developments that see their affordability “expire” and revert to higher-cost market rates. For example, Worcester Common Ground, a Community Land Trust and Community Development Corporation, receives its revenues from grants, rental income, and tax credits.

While all CLTs share the common goal of preserving affordability, they can differ in focus. Some CLTs are primarily residential, focusing on providing affordable housing, while others may focus on community development, such as managing commercial spaces, community gardens, or parks. Some CLTs also work on broader community initiatives, like environmental sustainability or food security. For a local, housing-focused example, see the nearby Somerville Community Land Trust. In Medford, the Brooks Estate Land Trust operates with an environmental and historical preservation mission.

A Community Land Trust (CLT) is a nonprofit organization that acquires and holds land for the benefit of a community. In a CLT model land is owned collectively by the community, while the homes on the land are owned by individual residents through long-term lease. A CLT is often community driven where community members participate in the decision-making process.

An Affordable Housing Trust Fund (AHTF) is generally a municipal entity which acts as a bank to support affordable housing initiative, typically through grants, loans or subsidies. AHTF may receive funds from various sources such as government allocations, development impact fees, taxes, or private donations. These funds are then used to finance affordable housing developments, programs, or services such as development of new affordable housing, rental assistance, down payment assistance, or rehabilitation of existing housing stock. AHTF’s can also develop surplus municipal land.

Overall, both CLTs and AHTFs aim to address affordable housing needs. CLTs focus on community ownership and stewardship of land to provide permanently affordable housing while AHTFs primarily provide financial resources to support a variety of affordable housing initiatives and programs.

You can participate in the engagement for the City of Medford’s Community Land Trust Strategic Plan. The City will be holding an Open House for the project in the new year (tentatively January 2025). Those interested in playing a more active role in a future Community Land Trust in Medford can contact City staff at amoogoor@medford-ma.gov.